Top managers of Root Industries predicted 2024 sales of 14,800 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000 Prepare Root's flexible budget performance report What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any
Top managers of Root Industries predicted 2024 sales of 14,800 units of its product at a unit price of $7.50. Actual sales for the year were 14,000 units at $11.00 each Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $2,000 Prepare Root's flexible budget performance report What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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